Seagate fires CEO and 800 employees

Seagate announced it has replaced its two executives and said it plans to cut 800 jobs, about 10 percent of its US work force, because it suffers from lower demand.

In a surprise move, the Scotts Valley-based company announced Monday that William Watkins, 56, Seagate's chief executive since 2004, and Dave Wickersham, 52, the president and chief operating officer, had both left the company, effective immediately. Seagate declined to make either executive available for comment.

The company also announced that it plans to cut 10 percent of its 8,000 U.S.-based workers. It has 53,000 workers worldwide.

A familiar face will fill the CEO slot. Stephen Luczo, 51, a former investment banker who served as Seagate's CEO from 1998 until 2004 amid a wrenching restructuring, will have to engineer another big turnaround to get the company back on track.